The state legislative auditor is weighing in with a report likely to prompt further action.

In the last two years, hundreds of property tax assessments in Terrebonne Parish have been changed for various reasons, but some of the changes are being questioned and one watchdog group says the biggest loser is the people of Terrebonne Parish.

David Hollister works in Houma, buying gold.

On any given morning, customers can find him in front of the South Hollywood Plaza, looking for customers.

A stone’s throw away from the plaza sits an empty lot.

The owner of the empty lot, according to tax records obtained by the WDSU I-Team, was granted a break on the taxes by the Terrebonne Parish Assessor’s Office.

According to the records, the owner was granted a land use exemption by the assessor’s office and parish assessor Loney Grabert.

A land use exemption is a tax discount that is applied when the land is being used for a specific agricultural purpose. In this case, the purpose is bailing hay.

“I don't see it,” Hollister told WDSU. “I just don't see anything on that lot at all. They cut the grass every once in a while, but I been here for a few months.”

With the assessor’s determination, the property taxes on the tract of land went down, too.

Records show the owner of the property once paid nearly $5,000 a year in property taxes. After the exemption, they paid a little more than $10 a year.

Rafael Goyeneche with the Metropolitan Crime Commission said the commission made a formal complaint to the state’s legislative auditor, raising concerns about the assessor in Terrebonne Parish.

“The grass was kept mowed on a weekly basis. So if he was harvesting hay, it was being harvested at about an inch a time,” Goyeneche pointed out. “It's inexcusable for the assessor not to catch something like that.”

Grabert initially agreed to an on-camera interview with WDSU, but cancelled and responded by email.

Grabert said in the email that the owner applied for the land exemption and it was granted.

The I-Team went to Grabert’s office and to his home in an effort to interview him on camera, but was unavailable.

“This affects every resident of Terrebonne Parish because property taxes are used to support the essential of parish government,” Goyeneche said.

Since he was elected in 2011, Grabert has approved hundreds of changes to people’s property tax assessments – more than 500 in all.

One of the assessments was done via a handwritten note, which applied to a home just outside of Houma on Bayou Black Drive.

Records show that at one time, the five-bedroom home, which included a pool, bath house and spa, was on the market with an asking price of $3.3 million.

However, in 2011, the property tax was lowered. The reason, according to records was “destroyed by fire.”

The note from the assessor’s office told the homeowner, “Do not pay the bill you have. Call me again next year and we will adjust. I will do a change order for you again next year. Do not want to put adjustment on tax roll for everyone to see. Will have too many questions asked."

The reduction meant the homeowner’s property tax bill went from just over $15,000 to $1,800 a year.

The note was signed by Evelyn Pellegrin.

According to the assessor’s website, Pellegrin is listed as Grabert’s top employee – deputy assessor.

“The process that was used to address an overvalued property is totally inappropriate,” Goyeneche said. “That's why we alerted the legislative auditor's office.”

A recently completed report shows the auditor found serious problems and that Pellegrin may have broken state laws.

Pellegrin says the property on Bayou Black Road was overvalued.

But instead of giving the homeowner a refund, she listed the home as damaged by fire. She admitted to state auditors that there was no fire and that she knowingly falsified the document. She said she was trying to square things up with the property owner.

Grabert told the legislative auditor last month, “There was no illegal intent at all to cause a financial advantage to the property owner or a financial disadvantage to the parish. I have already begun training my staff in the proper methods to process change orders."

“I certainly think the public has a right to know this type of information about one of their elected officials because this affects every resident of the parish,” Goyeneche said.

Grabert succeeded former assessor Gene Bonvillain, who died in 2011. Grabert was Bonvillain’s chief deputy.

The case made by the state legislative auditor has been sent to the district attorney in Terrebonne Parish for his consideration.

No charges have been filed against Pellegrin or Grabert. An investigation is ongoing.

LOUISIANA ASSESSOR'S OFFICE MAY BE BREAKING THE LAW, CUTTING BACK-DOOR DEALS, COSTING THE PARISH HUNDREDS OF THOUSANDS OF DOLLARS. it's inexcusable for the assessor not to catch something like that. NOW THE STATE LEGISLATIVE AUDITOR IS WEIGHING IN WITH A REPORT LIKELY TO PROMPT FURTHER ACTION. I-TEAM INVESTIGATIVE REPORTER TRAVERS MACKEL IS LIVE AT SIX WITH THE STORY. HERE IT IS - IN THE LAST TWO YEARS HUNDREDS OF PROPERTY TAX ASSESSMENTS IN TERREBONNE PARISH HAVE BEEN CHANGED FOR VARIOUS REASONS - BUT SOME OF THE CHANGES IN HERE ARE BEING QUESTIONED ... AND ONE WATCHDOG GROUP SAYS THE BIG LOSER IS THE PEOPLE OF TERREBONNE PARISH. DAVID HOLLISTER BUYS GOLD. AND ON ANY GIVEN MORNING IN HOUMA - YOU'LL FIND HIM HERE -- IN FRONT OF THE SOUTH HOLLYWOOD PLAZA -- LOOKING FOR CUSTOMERS. Nats JUST A STONE'S THROW FROM THE PLAZA AND ITS FAST FOOD RESTAURANTS, GYM AND NAIL SALON - IS THIS EMPTY LOT ... have you ever seen anyone ever bailing hay on that lot? Bail hay ... No, no. BUT ACCORDING TO PROPERTY TAX RECORDS - OBTAINED BY THE WDSU I-TEAM - THE TERREBONNE PARISH ASSESSOR'S OFFICE GRANTED THE OWNER OF THIS PIECE OF LAND, THIS EMPTY LOT- A BIG BREAK ON HIS TAXES. RECORDS SHOW THE OWNER OF THE PROPERTY APPLIED FOR AND WAS GRANTED A LAND USE EXEMPTION BY THE ASSESSOR'S OFFICE AND PARISH ASSESSOR LONEY GRABERT. A LAND USE EXEMPTION IS A TAX "DISCOUNT" THAT IS APPLIED WHEN THE LAND IS BEING USED FOR A SPECIFIC 'ARGICULTURAL' PURPOSE. IN THIS CASE THE LAND USE IS FOR THE BAILING OF HAY ... would it surprise you yo know the assessor says someone is using that property to bail hay? Yeah - I don't see it ... I just don't see anything on that lot at all, they cut the grass every once in a while but I been here for a few months. ... AND WITH THE ASSESSOR'S DETERMINATION - THE PROPERTY TAXES ON THIS TRACT OF LAND WENT DOWN - WAY DOWN. RECORDS SHOW THE OWNER OF THE PROPERTY ONCE PAID ALMOST $5,000 A YEAR IN PROPERTY TAXES. AFTER THE EXEMPTION? JUST OVER $10 DOLLARS A YEAR. the grass was kept mowed on a weekly basis, so if he was harvesting hay - it was being harvested at about an inch a time. Nats - Rafael BASED IN PART ON THESE FINDINGS - THE NEW ORLEANS BASED METROPOLITAN CRIME COMMISSION MADE A FORMAL COMPLAINT TO THE STATE'S LEGISLATIVE AUDITOR, RAISING CONCERNS ABOUT THE ASSESSOR IN TERREBONNE PARISH. it's inexcusable for the assessor not to catch something like that. TERREBONNE PARISH ASSESSOR LONEY GRABERT INITIALLY AGREED TO AN ON-CAMERA INTERVIEW FOR THIS STORY, THEN CANCELLED AND RESPONDED TO US BY EMAIL, SAYING THE OWNER APPLIED FOR THE LAND USE EXEMPTION AND IT WAS GRANTED. WE WENT TO GRABERT'S OFFICE IN HOUMA AND TO HIS HOUSE IN DONNER IN AN EFFORT TO DO AN ON-CAMERA INTERVIEW. THE ELECTED OFFICIAL WAS NOT AVAILABLE ... this affects every resident of terrebonne parish because property taxes are used to support the essential of parish government. SINCE HE WAS ELECTED ASSESSOR IN 2011, GRABERT HAS APPROVED HUNDREDS OF CHANGES TO PEOPLE'S PROPERTY TAX ASSESSMENTS ... MORE THAN 500, IN ALL. ONE OF THOSE WAS DONE VIA THIS HANDWRITTEN NOTE, WHICH APPLIES TO THIS HOME JUST OUTSIDE OF HOUMA ON BAYOU BLACK DRIVE. RECORDS SHOW THAT AT ONE TIME, THE 5- BEDROOM HOUSE, WITH A POOL, BATH HOUSE AND SPA, WAS ON THE MARKET AS AN ASKING PRICE OF 3.3 MILLION DOLLARS. BUT IN 2011 THE PROPERTY TAX WAS LOWERED - THE REASON, ACCORDING TO RECORDS: THE 'RESIDENCE WAS DESTROYED BY FIRE'. THIS NOTE FROM THE ASSESSOR'S OFFICE TELLS THE HOME OWNER: "Do not pay the bill you have. Call me again next year and we will adjust. I will do a change order for you again next year. Do not want to put adjustment on tax roll for everyone to see. Will have too many questions asked." THE REDUCTION MEANT THE HOME OWNER'S PROPERTY TAX BILL WENT FROM JUST OVER $15,000 TO $1800 A YEAR. THE HAND WRITTEN NOTE IS SIGNED EVELYN PELLEGRIN . ON THE ASSESSOR'S WEBSITE, PELLEGRIN IS LISTED AS GRABERT'S TOP EMPLOYEE. the process that was used to address an over valued property is totally inappropriate. SO THE MCC ACTED ... that's why we alerted the legislative auditor's office. AND A RECENTLY COMPLETED REPORT SHOWS THE AUDITOR FOUND SERIOUS PROBLEMS -- AND THAT PELLEGRIN MAY HAVE BROKEN STATE LAWS. PELLEGRIN SAYS THE PROPERTY ON BAYOU BLACK ROAD WAS OVER- VALUED, BUT INSTEAD OF GIVING THE HOME OWNER A REFUND, SHE DECIDED TO LIST THE HOME AS DAMAGED BY FIRE - EVEN THOUGH SHE ADMITTED TO STATE AUDITORS THERE WAS NO FIRE AND SHE KNOWINGLY FALISFIED THE DOCUMENT. SHE INDICATED SHE WAS TRYING TO SQUARE THINGS UP WITH THE PROPERTY OWNER. GRABET TOLD THE LEGISLATIVE AUDITOR LAST MONTH ..."There was no illegal intent at all to cause a financial advantage to the property owner or a financial disadvantage to the parish. I have already begun training my staff in the proper methods to process change orders." i certanily think the public has a right to know this type of information about one of their elected officials because this affects every resident of the parish. LONEY GRABERT SUCCEEDED FORMER ASSESSOR GENE BONVILLAIN, WHO DIED IN 2011. GRABERT WAS BONVILLAIN'S CHIEF DEPUTY. THE CASE MADE BY THE STATE'S LEGISLATIVE AUDITOR HAS BEEN SENT TO THE DISTRICT ATTORNEY IN TERREBONNE PARISH FOR HIS CONSIDERATION. NO CHARGES HAVE BEEN FILED AGAINST PELLEGRIN OR GRABERT. WE'RE TOLD AN INVESTIGATION IS UNDERWAY. RIGHT NOW: POLICE ARE CALLING